CA AB2045

Establishes a corporation business tax benefit certificate transfer program allowing qualified emerging technology and biotechnology companies with unused net operating losses to surrender those losses to other corporations in exchange for private financial assistance.

Permits qualified transferees (corporations subject to Corporation Tax Law) to deduct transferred net operating losses beginning on or after the first day of the fourth taxable year after certificate issuance, with a three-year extension to the carryover period.

Limits aggregate annual net operating loss surrenders to $60 million plus previously recaptured losses, with a minimum of $25 million reserved for small qualified transferors with less than $250,000 in losses.

Requires private financial assistance from qualified transferees to equal at least 80 percent of the tax benefit value of surrendered net operating losses and restricts assistance use to qualified transferor operating expenses including fixed assets, working capital, research and development, and salaries.

Establishes qualified transferor eligibility requirements: emerging technology/biotechnology companies with fewer than 225 U.S. employees that have not demonstrated positive net operating income in the prior two years and meet specific in-state employment thresholds based on incorporation length.